Category: Accountants

 

In such turbulent times, not many of us really have any idea what to expect around the corner. As you react to this uncertainty, it is natural to seek answers and solutions to safeguard your business and livelihood. 

Although there are no hard and fast rules here, we can prompt you to ask yourself some critical questions to determine whether your business is likely to survive. This is so you can take proactive steps to support yourself and increase the chances you can power through subsequent months and years with a thriving business that offers that security we all need. 

So, what questions should you be asking?

Is a ‘new normal’ better or worse for my business?

COVID-19 has changed the way we all need to do business if we want to be able to reach out to consumers who are isolated from one another and fearful of their futures. There is an overwhelming push to move online as a remedy to the former issue, and business owners and operators do need to look at creative ways to ensure that they are connecting authentically with their audiences.

Understanding whether this shift online, in addition to emotional responses by your target audience, are beneficial for your current way of doing business is a key element in determining the health of your business.

How can I pivot to respond to the current situation?

A good business is one that responds to the needs of its clients, so the ability to watch market trends and to determine key points of interest is going to be one of the more critical factors in ensuring the survival of a business during difficult times.

In addition to this, a solution that is unique to your top competitors in the industry is going to attract a different niche, which can help, should your industry be flooded with similar businesses. 

How can I make sure that this pivot is going to provide an opportunity for growth?

Under pressure to simply survive, the thought of growth might need to take a back seat. Still, if you do not future proof your actions and offer room for maneuvering, then you might find yourself again needing to execute further cumbersome pivots to your business plan.

Businesses that have that flexibility to quickly and inexpensively pivot and respond to their customer’s needs are the ones that are the most likely to survive throughout the many changes that business will face over the coming months and even years. 

If you would like to discuss some of these concepts or other factors regarding the security of your business, then get in touch with one of our approachable accountants from Glance Consultants today. 

Update your ABN … or miss out!

Government agencies regularly access data contained in the ABN registration, and where this is not up-to-date the taxpayer may be missing out on stimulus measures, grants, and other government support.

This became painfully evident during the 2019-20 bushfires, and is now re-surfacing during COVID-19 when it was found that a concerning amount of ABN data was out-of-date. The ATO and the Australian Business Register are making efforts to remind businesses and relevant taxpayers that it is essential to ensure ABN registration details are accurate and completely up-to-date.

It is a business owner’s responsibility to make sure this is done (contact the Australian Business Register, see www.abr.gov.au). Once a business owner is aware of a change to the business, details on the register must be altered within 28 days. Updating ABN details will ensure:

■ the right people have the right permissions to act on behalf of a business

■ government agencies have current information – for example, if emergency services need to contact businesses during natural disasters

■ the entity is ready for new government services when they become available.

If you need assistance in updating your details please contact us.

We can also assist you to update:

■ business names

■ legal names for individuals and sole traders who need to contact the ATO directly

■ legal names for companies registered with the Australian Securities & Investments Commission (ASIC).

Name changes made by the ATO and ASIC will update the ABR automatically.

 

ATO’s cyber safety checklist

Scammers never seem to rest. In a new update the ATO reports that it is receiving reports of email scams about JobKeeper, JobMaker and backing business investment claims.

“The fake emails say we’re investigating your claims,” the ATO says. “They ask you to provide valuable personal information, including copies of your driver’s licence and Medicare card.”

During this time of heightened scam activity, the ATO is encouraging individuals and businesses to:

■ Use multi-factor authentication where possible and don’t share your password with anyone

■ Run the latest software updates to ensure operating systems security is current

■ Secure your private wi-fi network with passwords (not the default password) and do not make financial transactions when using public wi-fi networks

■ Exercise caution when clicking on links and providing personal identifying information

■ Only access online government services via an independent search – not via emails or SMS

■ If in doubt, call the ATO on an independently sourced number to verify an interaction

■ Educate your staff on cyber safety and scams.

To report a data breach or scam visit ato.gov.au/onlinesecurity

 

New Director Identification Number regime may be just around the corner

The Director Identification Number (DIN) regime may have been lost in many business owners’ peripheral vision, or even dropped off the radar completely, as it has been on the horizon for some time. But it is worth keeping in mind the ramifications of the measure, as the details could become important sooner than many realise, even before this year is out.

The legislation putting the regime in place has already been passed in June last year, but the scheme is not yet in operation. This is initiated by “proclamation”, which is required to happen within two years of the legislation becoming law.

The regime is part of the government’s “modernising business registers” program, which is intended to lessen corporate phoenix activity – the process of continuing business activity of a company that has been liquidated to avoid its debts — with the DIN regime increasing accountability by making directors traceable.

DINs will be recorded in a database that will be administered and operated by a registrar from an existing (yet to be determined) government agency. The registrar will have the power to issue DINs (once satisfied of a director’s identity) and the responsibility of recording, cancelling or re-issuing DINs. The Administrative Appeals Tribunal will have jurisdiction to review decisions made by the registrar.

Under the scheme, directors will be required to have their identity verified and have a unique and permanent identifier issued to them. Companies will need to put processes in place to ensure that all existing directors apply for a DIN within the prescribed timeframe once the regime is implemented. Also, companies will need to ensure that director appointment processes include the necessary steps for new directors to apply for a DIN. The number will continue to apply even if a director leaves their position.

Within the first 12 months following implementation, new directors will have 28 days after appointment as a director to apply for a DIN. Following this time, individuals must apply for a DIN before becoming a director. For existing directors, transitional provisions should provide a period during which they will need to obtain a DIN.

The regime is expected to have other benefits such as increasing the accessibility of important information that may assist administrators and liquidators. It is anticipated that the public will be able to search the registry and view a director’s profile, including any historic relationships with different companies. For example, if the director has had past involvement with insolvent trading, that information will be available on the registry.

The legislation introduced both civil and criminal penalties for a failure to apply for a DIN within the required time frame, with criminal penalties for deliberately providing false identity information or a false DIN to a government body and intentionally applying for multiple DINs.

The procedures and documents required to obtain a DIN are not included in the legislation, and will probably be set out in a separate announcement in the coming months.

However administrative changes introduced by the scheme may have practical implications when appointing directors on an urgent basis. For this reason, businesses need to be aware of the coming changes so they will be ready to implement procedures to ensure compliance with the law and the timely appointment of directors.

 

Unexpected lump sum payment in arrears? There’s a tax offset for that!

A lump sum payment in arrears is a payment you may receive that relates to earlier income years.

The tax offset that can be utilised with these sorts of payments works to alleviate the problem of a taxpayer being expected to pay more tax in a year when a lump sum of back payments is received — where they would be disadvantaged by paying more tax than if the income had been spread over several income years.

The general rule is that employment income is assessable in the income year it is received, regardless of the period the payment covers. This is still the case, however the tax offset works to restrict the amount of tax payable to the same “marginal” rate that would have applied if it were “received” in the tax year or years it relates to.

As the lump sum payment in arrears (LSPIA) is taxable in the year you receive it, it can impact your tax and non-tax entitlements such as:

■ student loans

■ child support and welfare payments.

You may also find that as a result you:

■ are in a higher tax bracket and pay more tax than you would have if you received the amount when you earned it

■ are in the same tax bracket and pay the same amount of tax as you would have if you received the amount when you earned it

■ are in a lower tax bracket and pay less tax than you would have if you received the amount when you earned it

■ have a new or increased Medicare levy surcharge obligation, because the lump sum pushes you over a Medicare levy surcharge threshold.

The ATO says taxpayers may be able to access the tax offset for certain payments, which usually relate to employment, compensation or welfare payments. To be eligible for the tax offset, a LSPIA must be 10% or more of your taxable income in the year of receipt after you deduct any:

■ amounts that accrued in earlier years (that is, this payment)

■ amounts received on termination of employment in lieu of annual or long service leave

■ employment termination payments (ETPs)

■ income stream and lump sum superannuation payments

■ net capital gains

■ any taxable professional income that exceeds the average taxable professional income.

The ATO notes that the calculation of this tax offset is complex, therefore, there is no online calculator.

 

Vehicle benefit FBT treatment changes under COVID-19

The special circumstances that coronavirus has thrown our way looks like having some very practical outcomes on certain areas of fringe benefits tax. One of the most prevalent and well-established category of fringe benefits centres on the provision and use of vehicles. The parking of a car, for instance, is a benefit that comes with very specific conditions regarding the taxable values that attract FBT.

A work car park closes

If, on a particular day, a business’s office is closed due to COVID-19 and therefore the work car park is also closed, the employer will not have provided a car parking benefit as there will be no car space available for use by an employee for more than four hours between 7.00am and 7.00pm on that day. The time during which the work car park is closed will not form part of the availability periods used to calculate the taxable value of a car space under the statutory method.

Closure of nearby commercial parking stations

If all of the commercial parking stations within a one kilometre radius of a business premises are closed on a particular day due to COVID-19, there will be no car parking benefits provided.

Reduced rates at commercial parking stations

If, on for example 1 April 2020, the lowest fee charged by all of the commercial parking stations within a one kilometre radius of a business premises for all day parking was less than $9.15, the employer will not have provided a car parking benefit. For example, this may occur where all of the commercial parking stations have discounted their all-day parking rate due to COVID-19.

However, the reduced fee must not be substantially greater or less than the average of the lowest fee charged by a commercial parking station operator in the four weeks prior to 1 April 2020 or the four weeks after 1 April 2020. The ATO holds that the reduced fee is disregarded for the purpose of determining the lowest fee charged by a nearby commercial parking station if it does not meet this requirement.

Car returned to employer’s business premises

An employer won’t provide a car fringe benefit where a car is not supplied for an employee’s private use or taken to be available for an employee’s private use. During a period of COVID-19 restrictions, a car that has been provided to an employee is not taken to be available for the employee’s private use if all the following apply:

■ the car is returned to the business premises

■ the employee cannot gain access to the car

■ the employee has relinquished an entitlement to use the car for private purposes.

The ATO says some factors that indicate a car is not taken to be available for an employee’s private use during these restrictions include where:

■ the employer requests that the car be returned to the business premises

■ the employee does not have physical access to the car

■ the business consistently enforces a policy that an employee cannot gain access to the car

■ if the employee has made a choice to surrender the car, they cannot change that choice and obtain the ability to access the car

■ the car is returned to the business premises and the employer applies the car to a different purpose (although a separate car benefit may arise if the car goes to another employee who applies it for private use).

Garaging work cars at an employee’s home

An employer may have been garaging work cars at employees’ homes due to COVID-19.

The employer may not have an FBT liability depending on:

■ the type of vehicle

■ how often the car is driven, and

■ the calculation method they choose for car benefits.

Log books

A business’s employees’ driving patterns may have changed due to the effects of COVID-19. If an employer uses the operating cost method, they may have an existing log book. They can still rely on this log book to make a reasonable estimate of the business kilometres travelled. They can also choose to keep a new logbook that’s representative of business use throughout the year.

 

Click to view our March 2021 Newsletter PDF

 

 

 

 

 

Depending on which state you or your business is based in, there are different support packages that the Australian Government are providing to businesses who are feeling the devastating impacts of COVID-19.

Out team here at Glance Consultants, are working tirelessly to ensure that our clients are aware of what is available to them and ensuring that they are quickly taking advantage of such support packages so that businesses can keep their staff employed and their doors ready to open when they can.

With new approaches to controlling potential outbreaks frequently in development, such as the circuit breaker action that has recently been implemented in Victoria, a $143 million response by the Government has been established that provides necessary assistance to businesses that have lost significant income as a direct result.

There are four initiatives within this support package. These include business costs assistance for those who have incurred losses through cancelled bookings or perished foods, an update on the Licensed Hospitality Venue Fund for those who were previously eligible for this support and accommodation support for those tourism accommodation providers who can prove they have lost bookings during the circuit breaker action.

For some of these support packages, you do not need to apply, as you will be contacted directly should you be eligible. For others, it is vital that you bring together the right documentation and deliver through the correct avenues in order to receive the support that you need swiftly.

If you’re unsure whether you can seek specific financial support such as those presented in the circuit breaker action business support package, or you simply do not know where to start with it all, then rest assured that we are able to guide you in the right direction and provide you with relevant advice.

It’s not always about money.

Financial assistance isn’t the only necessary support for business owners and their employees during these tempestuous times. This can lead to more rash decisions as we become jaded to constant fear and anxiety over the precarious situation that we have all found ourselves in. Ensure that you take a moment to congratulate yourself and your staff for what you have achieved over the past year and hold fast knowing that such support packages from the Australian Government seek to keep businesses afloat and individuals in jobs.

Contact us on 03 9885 9793 or fill out our contact form to get in touch with one of our accountants today.

 

When registering a business in Australia, you would need to think about the types of taxes that would apply to your business. Many business owners are confused about which taxes they should pay and when they should pay them. Goods and Services Tax (GST) is one of those taxes that can be confusing for some business owners — especially for first-time business owners.

What is Good and Services Tax

Goods and Services Tax (GST) is a 10% value-added tax placed on most services and goods sold within the country. We say most, as there are some exceptions, such as select housing and health items, and particular food. Some long-term accommodation may also be exempted and may only be taxed at 5.5%.

If you’ve registered your business for GST, you should include it in the price you charge for your goods or services. You can also claim GST credits for applicable goods and services you purchase for your business.

Why Is It Important to Know

Understanding GST helps you decide whether it’s time for your business to register for it or not. Additionally, it will help you determine when to charge for GST and when you shouldn’t.

Some GST-free products and services are:

• Basic food
• Select medicines
• Select childcare services
• Select health care and medical services
• Select medical appliances and aids
• Select charitable and religious activities
• Accommodation, meals, and supplies of those living in retirement villages by select operators

Should Your Business Register for GST?

Not all businesses or organisations need to register for GST. Businesses with a GST turnover of at least $75,000 must register. For non-profit organisations, you would only need to register if your GST turnover is at least $150,000.

Businesses offering limousine or taxi travel like OLA, DiDi, and Uber must register for GST, regardless of their GST turnover.

Do you want to claim fuel tax credits? Consider registering your business for GST regardless of your GST turnover.

How to Register for GST

Do you already have an Australian Business Number (ABN)? If yes, we are able to register your business for GST.

If you do not have an ABN yet, you can register for ABN and GST simultaneously.

Once your business is registered for GST, you would need to provide tax invoices specifying the invoice total and GST component. Additionally, you must obtain tax invoices for purchases made for your business so you can claim GST credits. A robust accounting software should be maintained for this purpose.

Lodgement & Payment Requirements

On a monthly, quarterly or annual basis, your net GST payable or receivable figure would need to be calculated, reported and lodged via a Business Activity Statement. Lodgement and payment (if applicable) would be due within certain deadlines depending on the BAS (Business Activity Statement) cycle your business is on.

GST does not have to be complicated. Let us assist in managing your GST obligations. Call us at 03 9885 9793 or email enquiries@glanceconsultants.com.au to see how we can help you.

Finally finding a business, you would like to purchase and invest in is exciting. Before finalising your contract, however, make sure it is genuinely worth the investment you are about to put in.

To protect yourself, consider having a checklist of things to review before closing the deal. Do not just depend on what the seller says, or the business’s overall performance is. Dig deeper and analyse.

To assist you, we have listed down some of the items you have to consider when purchasing a business.

Check, and Double Check the Documents!

Some of the documents you should have, and review are:

• Contract of Sale
• Vendor’s Statement or Section 52 Statement
• Copy of Lease
• Financial records

When reviewing contracts, it would be best to check if you could add a performance clause. The clause should state “minimum takings of the business” for a set period while you finalise the settlement. Additionally, consider having the right to work on the business before you get into a binding contract. This way, you could confirm all the claims the seller made about the business.

Another thing you should review is the business’s existing contracts with suppliers. Ensure transfer of these contracts is included in your Contract of Sale.

Before the Transfer

Verify the name of the business and make sure the seller has clear ownership. Furthermore, they must have full rights to transfer the ownership of the business.

Does the seller own the premises where the business is located? Are they transferring the title of the premises to you, too? If yes, verify the land ownership to confirm they are the actual owners and have the right to transfer the premises’ ownership to you.

Red Flags

Take caution if you see any of these red flags when trying to purchase a business:

• A significant amount of customer complaints
• Dropping of prices to boost gross sales before selling the company to you
• Pending litigation

Failure to disclose any relevant information regarding the business should be a significant red flag for you. Therefore, it is crucial to perform a background check about the business. You really would not know if a seller were concealing something unless you do your own research.

Is the seller in a hurry to sign off? Are they refusing to introduce you to their suppliers? If so, it may be best to take a step back. Decide if it is in your best interests to proceed with the purchase.

Still need help with acquiring a business? We can assist you. Call us on 03 9885 9793 to find out how we can assist you with a business acquisition. You can get in touch with us by sending an email to enquiries@glanceconsultants.com.au to schedule an appointment with a member of our team.

 

Are your tax obligations stressing you out? While it may be a few months away, thinking about your strategic taxation plan now could help you avoid headaches when your tax liabilities are due. Additionally, it ensures that you won’t overlook anything or come across unpleasant surprises.

Not sure how to go about your taxation plan? Here are some things you should know to help get you started.

What is Strategic Taxation Planning 

Strategic taxation planning is the process of understanding, managing and anticipating tax liabilities based on your business financial goals and activities. Ideally, it’s recommended to carry out a review atleast annually so that your business is up-to-date with any changes in the taxation legislation. It also ensures that your taxation plan matches your current business goals.

Why is Taxation Planning Important

The most important benefit of having a taxation plan is that it allows you to minimise your tax liabilities within the rules and regulations in place. It also gives you more confidence in making strategic business decisions that could impact your finances.

When you fully understand your tax liabilities related to your business’s financial activities, you can take better control of your cash flow, debt payments, and other financial responsibilities.

Tips for Taxation Planning

When creating a strategic taxation plan, consider looking into the following factors:

• Cash flow — When you understand your business’s financial highs and lows, it will be easier to anticipate tax liabilities & deadlines and prepare for them. You would be able to avoid any undue financial strain on your business.
• Superannuation liabilities and contributions — Did you know that you could use your concessional superannuation contributions to reduce your tax liabilities? Often, business owners maximise their superannuation contributions in order to minimise their tax liabilities.
• GST cash accounting — This strategy could improve your cash flow as you pay GST at the point of collection and not when issuing an invoice to a customer.
• Small business restructure rollover — Looking to change your small business structure? Consider transferring active assets to another small business entity.
• Trading Stock Write Off – Obsolete/damaged stock – If identified, these items can be written off for accounting & tax purposes
• Bad Debts – Review your debtors and if any are unlikely to be recovered, write them off as bad debts before 30 June.
• Instant Asset Write off Concessions – concessions are available for eligible businesses that are looking to invest in fixed assets
• Prepaid expenses – bringing forward the recognition of certain expenses

Taxation planning doesn’t have to be complicated. At Glance Consultants, we specialise in taxation & cashflow planning for businesses. Our team of experts is ready to assist you in preparing your financial plans, financial statements and lodgement of your annual tax returns. We assist in the preparation and lodgement of your Business Activity Statements and variety of other lodgement obligations that you and your business face.

Call us at 03 9885 9793 or send an email to enquiries@glanceconsultants.com.au for more information on our business services.

 

 

The most cost effective and straightforward business structure you could set up in Australia is a sole proprietorship or sole trader. It’s a business type that doesn’t have any legal distinction between the business entity and the owner. 

A sole trader business structure is popular among consultants and individual contractors. Most operate under their personal names because you’re not required to have a separate trade or business name. Just as it’s easy to set up, a sole trader business is also relatively easy to dissolve.

Are you thinking of registering as a sole trader? Here are some tips to help you get started. 

Sole Trader Vs. a Company and a Partnership 

The main advantage of registering as a sole trader is that you don’t have to pay workers’ compensation, PAYG tax withholding and payroll tax (if you do not employ staff), as you’re not considered an employee of your business. Additionally, you are able to offset any losses in your business against other income-generating assets, such as your personally held investments provided certain criteria are met. A Sole Trader structure may suit best for individuals operating as consultants or individual contractors due to Personal Services Income issues, however this will depend on your particular situation.

A Sole Trader structure offers complete control over your business compared to a partnership or company structure where you may have other partners.

Another factor to consider is that this type of structure does not offer the income tax minimisation opportunities that a company structure could potentially offer.

Unlike a company structure, you have full liability for debts of your business as there is no legal distinction between private and business assets. This liability could place your personal assets at risk. Because you and your business aren’t two separate entities, your business’s debt could be considered your personal debt, too. However, note that even under a company structure, the director can be personally liable for debts such as unpaid employee entitlements.

With a partnership, each partner is jointly and severally liable for the partnership’s debts – that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts.

Things You Need to Register as a Sole Trader 

If you would be using your name, you won’t have to register a business name to set up a sole trader business.

You will first need to apply for an Australian Business Number (ABN).

If your annual business turnover is or likely to be more than $75,000/annum, you are required to register your business for goods and services tax (GST).

Finally, don’t forget to include your business income and losses as part of your income tax return.

 Not sure if a sole trader is the right business structure for you? Call us at 03 9885 9793 or fill out our contact form to determine how we can help you get your business off the ground.       

It’s 2021, and if your business still relies heavily on spreadsheets for your business operations and record keeping purposes it may be time to consider a more efficient option.

A 2018 study by Deloitte Access Economics and Research Now showed that approximately 31 per cent of businesses in Australia use cloud services for invoicing. Furthermore, about 26 per cent of companies use cloud services to manage their financial operations. In the recent past, the take up of cloud based accounting software has further increased for a variety of reasons.

Why do these companies use cloud services? One of the most popular reasons many make the switch is cost savings. You’re able to scale up or down your resources quickly based on your needs. Cloud based software offers efficiency and gives you an opportunity to provide better customer service. Imagine what you could do for your business if you could free up your time by automating or increasing the speed of processes like quoting, invoicing, payroll, sending follow-up emails, managing debtors & creditors and consolidating data.

Is cloud based accounting software for you? Here are some reasons why you should consider this option.

Understanding Cloud Based Accounting Software

In its basic form, cloud based accounting software allows your business’s financial data to be available online. This means you can access your books anytime, anywhere, and on any device. You are also most importantly able to provide access to your bookkeeper and accountant.

Today’s cloud based accounting software offer many features that make it easier to manage your finances and track your business cash flow. Additionally, these platforms come with multiple security layers to protect your data, so you manage your books with confidence and peace of mind that your data is secure.

Benefits of Cloud Based Accounting Software

It is suitable for all types of businesses. Whether you’re a small business owner, a sole trader, or a CEO of a fast-growing corporation, you would be surprised how cloud based accounting software fits in your business.

Here are some of its benefits.

1. Time- and cost-efficiency — A desktop-based accounting system requires regular upgrades. Additionally, you’ll also have to think about hardware management. This means that apart from spending on the hardware and software, you may need to spend on higher IT services. Cloud based software would increase the speed of your business operations and scaling up your operations would be easier to achieve.
2. Sustainability — With cloud based accounting software, it will be relatively easy to go paperless and do your part in protecting the environment.
3. Collaboration — Cloud based accounting software allows you to give access to team members, your bookkeeper and accountant who need to access your books. No more sending emails back and forth to share information. You could access the same data instantly.
4. Security — With cloud accounting, you won’t have to worry about losing important data. Your books are backed up on a real time basis, and your work is automatically saved.

Cloud based accounting software is easy to integrate into your business processes, and we are here to help you make the most of it. Get in touch with us to learn more about cloud based accounting software and how it can support your business growth.

 

For many entrepreneurs and business leaders, managing a business is similar to going on a mission with people who share your vision. However, at some point, your task would reach its end, and it’s time to find someone else to take your place.

How do you ensure your business will continue to thrive even after you’ve stepped down? That’s what a succession plan is for.

Here are some tips to get started with a succession plan for your business.

Do I need a succession plan for my business?

Many small business owners often ask if they too need a succession plan for their business. The answer is yes. It doesn’t matter how big your business is. A succession plan would help you make sure your business transitions smoothly to new leadership.

Creating a Succession Plan

1. Build a Succession Planning Team

It’s best to have a team with people who are process-oriented and know your business inside out before starting with your plan. Additionally, it would help choose people from different areas of your organisation to keep this team balanced.

Your succession planning team should also understand competency development to tap talent in your business with great potential.

2. Take Stock of Your Business Assets

The next step is to take stock of your assets — including your staff. What are your assets, and how would these assets be affected by a change in leadership?

Part of succession planning is thinking about the future leadership of your business. Are there individuals within the workforce who can be the next leader of your organisation?

3. Define Essential Roles and Responsibilities

One way to find top talent in your staff who may have what it takes to lead your business is to define essential roles and responsibilities and evaluate which of your team could take on these tasks.

4. Revisit Your Strategic Plan for Your Business

Your strategic plan informs your employees and clients of what they can expect from your business in the years to come. Because of this, your succession plan must be in line with your strategic plan. Otherwise, your succession plan could fail.

You shouldn’t rush the creation of a succession plan. And it doesn’t hurt to start creating one as early as possible. This way, it’ll be easier to begin the process of transitioning the business to new leadership as you already have a plan prepared.

Need help with succession planning? Contact our team. We could help you create a succession plan together with the legal paperwork (in collaboration with our legal network) that meets your goals. Send an email to enquiries@glanceconsultants.com.au or call 03 98859793.

 

Is your organisation ready for the holidays? Before heading off to merry land, there is one more thing you have to do, and it is not a Christmas shopping list but your end-of-year bookkeeping.

Have a good start to your New Year by not worrying about your books from the previous year. Closing your books does not have to be complicated. And we are here to help you get started.

Make sure all transactions are recorded.

One of the reasons many businesses struggle with end-of-year bookkeeping is that they don’t have accurate records of their transactions. This does include not only sales but also your expenses, other miscellaneous costs, asset & liability balances.

Be sure to double-check invoices and accounts receivable.

Make sure all invoices are created and sent out. If there are any unpaid invoices, consider sending out email reminders so your clients could settle them as soon as possible. On the same note, check if you have any outstanding invoices from your suppliers and resolve them.

Don’t forget your tax responsibilities.

Are you thinking of giving out holiday bonuses to your employees? Check to see whether or not you need to withhold a certain amount for PAYG Tax Withholding.

Assess your inventory.

The end-of-year is an excellent time to check your inventory for errors and areas of improvements in your stock management process. Be sure to correct any discrepancies between the numbers in your books and your actual list.

Revisit your financial statements.

After you’ve completed all necessary adjustments in your books, it’s time to review your financial statements for significant movements from the previous year’s numbers. Doing so gives you a good idea of how your business has performed for the year.

Create your balance sheet report and profit and loss report.

It would help to create financial reports for the year, especially if you have partners in the organisation that would want to stay up-to-date with your business’s performance. With these reports, you could get started creating your business plan and strategy for the next year, giving you a confident start for 2021.

Are you having a hard time with end-of-year bookkeeping? Count on Glance Consultants to help you close your books. We could help you with a bank account and credit card reconciliations, accounts payable and receivable, payroll processing, PAYG summaries and more.

Call us at 03 9885 9793 or fill out our contact form to learn more about our bookkeeping services.